Future Trends in Human Resources
FUTURE TRENDS IN HUMAN RESOURCES 7
Digital technology continues to evolve at a neck breakingspeed while it permeates nearly every aspect of our every day workinglives. In future, digital technology is projected to empower peopleinto taking more responsibility in Human Resources activities. Whiledigital technology enables talent management to be less centralizedin its HR activities, it continues to move in the direction where itis becoming more embedded in the fabric of daily business and willfundamentally change the HR trends in the future.
For example, Cablers IT Company and the overall IT industry is facedwith possible trends in HR such as modern labor force, growth,technology, organization strategy, and the changing employmentrelationships. Cablers and the overall IT industry is struggling todetermine whom to engage in the future workforce. The industry isalso faced with possible positive and negative impacts that couldcome as a result of future change in HR trends. Research studycarried out on the Cablers IT Company resulted in the identificationof these trends that are projected to have an influence in the futureof HR. They include: Demographics, technology, and the economy.
Rapid change in demographics in the recent times is clearevidence that it could soon have in impact in the HR future trend,which could result in the shortages of workforce in most companiesand other practitioners. This could in turn influence recruitmentprocedures and the overall number of workforce (Rojko et al., 2011).It is believed that less number of graduates could be available forrecruitment since the demographics could have changed. At this pace,Courtney (2012) points out that most IT firms have since put in placea number of policies and programs in order to focus in keeping itsemployees. Changes in demographics could also result in expectations,and according to Bondarouk & Olivas-Luján (2014), the youngergeneration could be more demanding than their predecessors.
Change in technology is also another factor in future HR trend. Asmuch as it is rapidly being integrated in most of the organizations,it could soon influence what is required of people in their jobs.This could then create a need for more training as it continues todevelop further (Alho et al., 2011). The change in technology couldalso result in the changes in employee training. For example, in theCablers Company, Human Resource has pushed for changes in technologysince these changes have helped HR achieve its target.
More so, technology could be a trend that will affect the HRpractices for example, technology could affect the payroll functionthat is often outsourced in the IT industry. Everything could be doneonline – management processes, skill tracking, interim interviews,and succession planning. It is projected that soon, the peopleworking in an organization could not be required to be present intheir offices rather, they could all be working outsides theiroffices but are connected by technology. The problem could only tointegrate them.
The economic future trend could be influential on how the ITindustry will be run. The impact those future recessions is alsoanother factor that will influence the rate and number ofrecruitments. It could also be easier to get employees as well if theeconomy is not performing very well however, adverse effects offuture recessions may result in more retrenchments and redesigning ofjobs since the firms could not be willing to invest more money intraining (Rothwell et al., 2012)
Against the possible backdrop in the future economic uncertainties,it may be reassuring to see the HR function having a crucial role toplay in improving organizational performance however, the futureeconomic situation, whether positive or negative, could lead tomaking changes in the HR strategies. According to Rothwell et al.,(2012), 58% of respondents interviewed in the IT industry expecteconomic changes to be long term rather than short term. They expectthat their organization’s economic performance will worsen over thenext 10 years, and that there could be biasness towards hort-term HRmeasures being implemented. However, there was no possibility,according to them that a clear pattern will be present that couldcompare HR strategy to financial performance (Rojko et al., 2011).
Positive and Negative Impacts on Future HR
In regard to demographics, one challenge could be to assessthe qualifications of the applications properly since there could beinsufficient standardization in education. As business expands, therecould be a need for HRM to carefully scrutinize job qualifications.It is also important to note that a change in future demographicsfrom the old guard to youthful employees could be beneficially in theindustry especially those that are technology-oriented. Lussier &Hendon (2013) were quick to point out that it has become difficult tohandle complexities and strategic vision that comes along with agetherefore, companies could be looking to recruit young people who areunpredictable yet competitive.
Secondly, technology will have its share of both positive andnegative impacts in the HR future trends. Positively, it is easierfor HR manager to track down complacencies such as competency levelsand labor costs by a workgroup. He or she will be able to viewpersonal information, pending mails, and alerts that notify certaintasks needs to be attended to (Deadrick & Stone, 2014). Inaddition, there is the case of telecommuting, which is projected toinfluence future HR trends by allowing workers to work from thecomfort of their homes or any other location outside the company’s’offices. One of its negative impacts will be the technological costof the organization as a result of workers spending a lot of time infront of their computer screens instead of focusing on beingproductive. This would result to the loss of millions of corporatemoney (Courtney, 2012). Subsequently, future trends could incorporatethe use of technology in recruitment. The use of technology couldresult into ineffective acquisition of the right individuals withskills that meets the company’s strategic vision since thejobseekers will use search engines and other online platforms toapply for jobs.
Global economy could have a negative impact on the future trend ofHR simply because in recent time, the financial sector has ceased tofunction normally. Bondarouk & Olivas-Luján (2014) noted thatit will take time for remarkable efforts in the future to be noticedsince the economic crisis the companies’ HR could experience willbe hard to settle. The future financial market is also projected toweaken and it could lack efficient coordination and monitoringmechanisms. Global regulation, nationalism and pessimism, couldinstead grow stronger among majority of economic sectors includingIT. From the three trends, the one that could have the most impact isthe economy. This is because global economy is very hard to predictand once it strikes, its adverse effects are inevitable.
To prepare for these trends, Cablers and the overall IT industrywill have to seek out alternative measures especially the use oftechnology. For example, through training of personnel, it is easierto point other alternative methods such as the use of mobile apps asopposed to the organizations’ computers in search of jobs. Inregard to demographic trend, the HR department will have to look intoways of increasing the number of youths in the organization asopposed to turning down their technology knowledge and skills (Alsoet al., 2011). The use of financial advisers and economists shouldalso be embraced for them to project future economic trends.
Alho, J., Jensen, S. E. H., & Lassila, J. (2011). Uncertaindemographics and fiscal sustainability. Cambridge, UK: CambridgeUniversity Press.
Bondarouk, T., & Olivas-Luján, M. R. (2014). Human ResourceManagement, Social Innovation and Technology. Bradford: EmeraldGroup Publishing Limited.
Courtney, H. (2012). 20/20 foresight: Crafting strategy in anuncertain world. Boston, Mass: Harvard Business School Press.
Deadrick, D. L., & Stone, D. L. (2014). Human resourcemanagement: Past, present, and future. Human Resource ManagementReview, 24, 3, 193-195.
Lussier, R. N., & Hendon, J. R. (2013). Human resourcemanagement: Functions, applications, skill development. ThousandOaks: SAGE Publications.
Rojko, K., Lesjak, D., & Vehovar, V. (2011). Informationcommunication technology spending in economic crisis. IndustrialManagement + Data Systems, 111, 3, 391-409.
Rothwell, W. J., Prescott, R. K., & Taylor, M. W. (2012). Humanresource transformation: Demonstrating strategic leadership in theface of future trends. Mountain View, Calif: Davies-Black Pub.